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Temporary Leave Income Guide

Qualifying for a Mortgage While You’re on Temporary Leave

Fannie Mae’s public guidance treats employer-confirmed temporary leave as employment, while qualifying income still needs documentation. Here is that public guidance, without quoting rates or promising an approval.

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Temporary Leave Basics

Leave does not end your employment, but the income still needs documentation.

Many borrowers on parental, medical or other employer-approved leave assume a mortgage application has to wait until they are back at their desk. For a conventional mortgage following Fannie Mae’s rules, employer-confirmed temporary leave counts as employment, while the income used to qualify still needs its own review.

Income must have a documented history, be stable, and be reasonably expected to continue. This page keeps that public Fannie Mae guidance separate from a borrower’s specific file — confirming which calculation applies, and whether the file otherwise qualifies, still requires Texana to review the full application.

Bottom line: temporary leave does not disqualify a conventional borrower, but the return date, the documentation, and which income figure is used all have to line up — and a layoff or furlough is not temporary leave.
File Review

What "temporary leave income" means, in Fannie Mae’s public guidance.

Temporary leave counts as employment

Fannie Mae’s employment-verification guidance treats a borrower on employer-approved temporary leave as employed, with employment itself still subject to verification (Fannie Mae Selling Guide B3-3.1-04, Verbal Verification of Employment, updated Oct. 7, 2026).

Qualifying income still needs a documented history

Income used to qualify must have a documented history, be stable, and be reasonably expected to continue — a standard that applies to leave income the same as any other income source (Fannie Mae Selling Guide B3-3.1-01, General Income Information, updated Oct. 7, 2026).

The return date decides which income figure is used

Fannie Mae’s Temporary Leave Income guidance permits regular income to be used if the borrower returns to work by the first mortgage payment date, and uses a different, lower calculation when the return comes later (Fannie Mae Selling Guide B3-3.3-09, Temporary Leave Income, updated Mar. 4, 2026).

Returning Before vs After the First Payment

The return date changes which income figure qualifies you.

Fannie Mae’s Temporary Leave Income guidance treats an early return, a later return, and a layoff or furlough as three different situations, each with its own documentation.

Returning by the first payment date

If a borrower will return to work on or before the date the first mortgage payment is due, Fannie Mae permits the borrower’s regular employment income to be used to qualify (Fannie Mae Selling Guide B3-3.3-09, Temporary Leave Income, updated Mar. 4, 2026).

Returning after the first payment date

If the return comes later, the lender uses the lower of the borrower’s leave pay or regular income. Eligible savings may supplement that figure, excluding funds needed to close and any required minimum reserves, but the total qualifying income cannot exceed the borrower’s regular income.

Documentation the file needs

Fannie Mae’s guidance calls for records of the borrower’s regular income, the amount and duration of leave pay, the borrower’s written intent to return, and employer-issued confirmation of the return date. The borrower’s employment must also be verified.

Why a layoff or furlough is different

Fannie Mae’s Temporary Leave Income guidance does not cover an employer-mandated layoff or furlough — those situations fall outside this category and are not treated as temporary leave.

Common Traps

Do not let half-true mortgage advice drive the file.

"Being on leave means I cannot apply for a mortgage"

No. Fannie Mae’s guidance treats employer-confirmed temporary leave as employment; qualifying income from that employment still needs its own documented review.

"My leave pay is all that counts, no matter when I return"

Not necessarily. If you return to work by the first mortgage payment date, Fannie Mae permits your regular income to be used instead of leave pay.

"A furlough works the same as parental or medical leave"

No. Fannie Mae’s Temporary Leave Income guidance does not extend to an employer-mandated layoff or furlough.

Related Pages

Keep the borrower path connected.

Sources checked October 9, 2026. This page is informational, not a loan approval, APR disclosure, legal advice, or commitment to lend. Temporary leave income eligibility, the return-date calculation and required documentation: Fannie Mae Selling Guide B3-3.3-09, "Temporary Leave Income" (updated Mar. 4, 2026). Employment verification during leave: Fannie Mae Selling Guide B3-3.1-04, "Verbal Verification of Employment" (updated Oct. 7, 2026). General qualifying-income standard: Fannie Mae Selling Guide B3-3.1-01, "General Income Information" (updated Oct. 7, 2026). Eligibility depends on the specific loan, the borrower’s full file, and final underwriting. No rates are quoted on this page.

Source: Fannie Mae Selling Guide B3-3.3-09: Temporary Leave Income (updated Mar. 4, 2026)
Fannie Mae Selling Guide B3-3.3-09: Temporary Leave Income (updated Mar. 4, 2026)
Fannie Mae Selling Guide B3-3.1-04: Verbal Verification of Employment (updated Oct. 7, 2026)
Fannie Mae Selling Guide B3-3.1-01: General Income Information (updated Oct. 7, 2026)
Related pages:
Conventional LoansCan I Qualify for a Conventional Mortgage If My New Job Starts After Closing?Can I Qualify for a Conventional Mortgage If My Student-Loan Payment Is Zero?Checking If You Qualify Without Hurting Your Credit

Want your temporary leave situation reviewed?

Bring your employer’s confirmation of your return date, your regular income, and the amount and duration of any leave pay. We will review the real file against current guidelines before you count on any number.

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